CITY PROPERTIES SDN BHD v JALEX SDN BHD

w-02nccw-1226-07-2022 Court of Appeal (Mahkamah Rayuan) 26 April 2026 • W-02(NCC)(W)-1226-07/2022 • 67 min read

18 cases cited (1 SG, 17 foreign)

Catchwords

Fraudulent trading-whether the court should exercise its discretion to adjourn the hearing of an appeal when a party’s learned counsel was ill and such fact was confirmed by a medical certificate (MC)- in an action under s 540(1) of the Companies Act 2016 (CA) regarding the business of a company (X Company) which “has been carried on with intent to defraud the creditors” of X Company or “creditors of any other person or for any fraudulent purpose” - does s 540(1) CA impose liability for X Company’s debts on another company? - is s 540(1) CA only applicable to individuals only?

Judges (3)

Alwi bin Abdul Wahab Coram Ong Chee Kwan Delivered Wong Kian Kheong Coram

Counsel (8)

Ben Chan Firm Gananathan Loh Firm Ben Chan Chong Choon Counsel Appellant Koo Jia Ying Counsel Respondent Nik Auni Syahirah binti Nik Azizi Counsel Appellant P. Gananathan Counsel Respondent Sangeetha Vasanth Kumar Counsel Appellant Yeoh Kai Ying Counsel Respondent

Parties (2)

CITY PROPERTIES Sdn Bhd Appellant JALEX Sdn Bhd Respondent

Statutes Cited

Companies Act

s 540(1)

Companies Act 1965 (Cap 777)

Companies Act 2016 (Cap 777)

Evidence Act 1950 (Cap 56)

Interpretation Act

s 3

Interpretation Act 1948

s 3

UK Companies Act 1948

s 332

UK Insolvency Act 1986

s 213

Cases Cited (18)

SG (1)

[2021] SGHC 80

UK (4)

[1932] 2 Ch 71 [1978] 1 Ch 262 [2003] EWCA Civ 289 [2004] EWHC 528

MY (13)

[1995] 3 MLJ 369 [2003] 4 MLJ 569 [2009] 1 MLJ 723 [2010] 1 MLJ 185 [2016] 3 MLJ 479 [2016] 6 MLJ 635 [2017] 10 CLJ 385 [2018] 2 MLJ 693 [2019] 1 MLJ 421 [2019] 2 CLJ 261 [2021] 8 MLJ 550 [2022] 6 CLJ 692 [2023] 3 MLJ 503

Judgment

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Source: eJudgment (w-02nccw-1226-07-2022)